RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/AG/GEN/22 
TN/AG/SCC/GEN/6 16 June 2006 
 
(06-2936) 
Committee on Agriculture 
Special Session Sub-Committee on Cotton Original:   French 
 
  
MODALITIES AND DISCIPLINES ON COTTON 
IN THE AGRICULTURE NEGOTIATIONS 
 
Communication from the Co-Sponsors
 
of the Sectoral Initiative in Favour of Cotton  
   The following communication, dated 15 June 2006,  is being circulated at the request of the 
Co-Sponsors of the Sectoral Initiative in Favour of Cotton. 
 
_______________ 
  
I. MANDATE 
1. The Sixth WTO Ministerial Conference adopted important decisions on cotton.  We reaffirm 
our commitment to the mandate on cotton as set fo rth in the Framework adopted by the General 
Council on 1 August 2004 and in the Hong Kong Minist erial Declaration of 22 December 2005.  We 
take note of the report submitted by the Chairman of the Special Session [...] on the progress achieved 
to date in the agriculture negotiations under the three pillars:  reduction of  domestic support [...], 
parallel elimination of all forms of  export subsidies [...], improvement of market access [...], and in 
addressing cotton ambitiously, expeditiously and speci fically regarding all trade-distorting policies 
affecting the sector in all three pillars of mark et access, domestic support, and export competition. 
2. We recall the decisions taken by the Member countries at the Hong Kong Ministerial 
Conference: 
− All forms of export subsidies for cotton will be  eliminated by developed countries in 2006. 
− On market access, developed countries will give duty and quota free access for cotton exports 
from least developed countries (LDCs) from th e commencement of the implementation period. 
− Members agree that the objective is that, as an  outcome for the negotia tions, trade distorting 
domestic subsidies for cotton production be re duced more ambitiously than under whatever 
general formula is agreed and that it should be implemented over a shorter period of time 
than generally applicable.  We commit ourselves to give priority in the negotiations to reach 
such an outcome. TN/AG/GEN/22 
TN/AG/SCC/GEN/6 Page 2 
 
 
  II. COTTON MODALITIES FOR THE THREE PILLARS OF THE AGRICULTURE 
NEGOTIATIONS 
A. M
ARKET ACCESS  
3. The developed countries together with the devel oping countries that are in a position to do so 
shall give duty and quota free access for cotton exports from least developed countries (LDCs). 
4. The developing countries that are not in a position to give duty and quota free access for 
cotton exports from LDCs undertake to facilitate their imports of cotton from the LDCs. 
5. The developed countries undertake to grant duty and quota free access for cotton exports from 
the developing countries. 
6. These commitments shall be fully applicable  as of the conclusion of the negotiations. 
B. EXPORT COMPETITION  
7. The developed country Members shall notify th e legislative and regulatory measures they 
have adopted in order to fulfil their commitment to eliminate, by 31 December 2006, their export 
subsidies for cotton, including all of the disciplines applicable to export competition.  Their schedules 
of commitments shall be modified with effect from 31 December 2006. 
8. The same commitment shall be made by the de veloping country Members, applicable as of 
31 December 2007 at the latest. 
9. This commitment shall apply to all export competition disciplines, such as export credits, 
credit guarantees, and insurance programmes. 
C. DOMESTIC SUPPORT  
1. Reduction of AMS (amber box) 
10. Reduction in the specific measure of support appl icable to cotton shall be determined as 
follows and using the following formula: 
 
 
 
  
Rc = Specific reduction applicable to cotton as a percentage Rg = General reduction in AMS as a percentage 
 
11. The six-year period for the implementation of the results of the Uruguay Round (1995-2000) 
shall serve as a base period.  The amount to wh ich the reduction formula is applied shall be the 
average of the amounts notified by Members under domestic support specific to cotton in supporting tables DS:4. 3*Rg (100 – Rg)*100 
Rc = Rg + ----------------------  TN/AG/GEN/22 
 TN/AG/SCC/GEN/6 
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  2. Blue box 
12. The blue box cap applicable to cotton shall amount to one third of the product-specific cap 
adopted in the framework of the agriculture negotiations.1 
13. Under the "double trigger approach", the tr igger based on the proportion of the production 
value of each product applicable to cotton shall be one third of the trigger for each other product. 
14. The basis criteria for the new blue box must nece ssarily respect the basi s criteria for the blue 
box established by the Uruguay Round, namely the limitation of production and less trade-distorting effects than the AMS measures.   
15. In that connection, disciplines shall be devel oped to monitor compliance with the prohibition 
on box-shifting of trade-distorting support for cotton. 
3. Elimination of all trade-distorting measures 
16. The substantial reduction in trade-distorting support for cotton (amber and blue boxes, 
de minimis ) must lead over time to the elimination of such forms of support.  
17. Members shall negotiate a deadline for such elimination as an element of the single 
undertaking. 
4. Time-limits for implementation 
18. The time periods for implementation in the case of commitments relating to cotton that do not 
enter into force at the date of the conclusion of the Round shall be one thir d of the respective time 
periods applicable to agricultural products in general. 
III. DEVELOPMENT ASSISTANCE 
19. As regards the development assistance aspects of the cotton issue, we recall the commitments 
made under paragraph 12 of the H ong Kong Ministerial Declaration: 
" ... We urge the Director-General to further inte nsify his consultative efforts with bilateral 
donors and with multilateral and regional institu tions, with emphasis on improved coherence, 
coordination and enhanced implementation a nd to explore the possibility of establishing 
through such institutions a mechanism to deal w ith income declines in the cotton sector until 
the end of subsidies ... " 
 and adopt the following decisions:  
(a) The principle of the creation of a safety net for the cotton producing LDCs is adopted; 
(b) Members agree to instruct their representa tives at the World Bank to ask the Bank to 
hold a meeting of donors in Autumn 2006 and to adopt a programme along with the necessary financing in time for inclusion in  the single undertaking at the end of the 
negotiations. 
__________ 
                                                     
 
1 As a percentage of the production value of the product during the reference period.